Construction and Land Loans
When a developer wants a piece of land for new construction, a hard money loan is faster than using a traditional lender to purchase the land and complete construction. When going the conventional route, you can expect to wait upwards of sixty to ninety days for funding. No one wants to wait that long. That’s why we provide funds in only a matter of weeks. That is a fraction of the time the banks offer.
Does Your Deal Meet Our Criteria?
- We Only Accept Land Deals in Major Metropolitan Areas
- We Don’t Offer Financing for Rural Properties
- We Don’t Accept Land Deals Under $200,000
If you prefer to email us, fill out the form below and an associate will contact you to review the loan scenario and provide a quote.
What is a Construction and Land Loan?
A construction and land loan is pretty self-explanatory. It is a short-term loan that finances both the price of the land and the construction costs associated with building. Like other hard money loans, part of the funds are designated to closing costs while the rest is held in escrow. The construction funds are distributed in pieces for the phase-by-phase projects in the building process all the way to completion. We do this to make sure the project stays within budget and on track.
At Hard Money Lenders California, we serve clients with new construction loans and land loans. We have a lot of experience funding the purchasing of land and construction projects fast and at any stage of the project. We offer the following funding:
- Land Banking and/or Option Financing
- Improved Lots
- Raw Undeveloped Land
- Commercial Units
- Plotted And Engineered Lots
Benefits of a New Construction Loan
- A new construction loan is based on the lot as well as the construction costs
- There is no minimum credit score
- Interest rates start from 10 percent
- We fund up to 70 percent of the land value and 70 percent of the construction cost.
- Average close time of 10 days
- Loans can be approved in as little as 24 hours.
This process is different than applying for a traditional loan from a bank. It’s actually much more simple. Banks or other lenders typically require a lot of paperwork, but our new construction loan doesn’t. The application is straightforward and easy. Once you complete it and are approved, an appraisal will be scheduled by an underwriter.
You can call our knowledgeable and friendly team of experts at 858-780-5162 or fill out an application right now on this website to see if you qualify for a new construction and land loan.